SHS Web Conf.
Volume 175, 2023International Conference in Innovation on Statistical Models Applied on Management, Humanity and Social Sciences (ICISMAMH2S 2023)
|Number of page(s)||12|
|Published online||30 August 2023|
Behavioral Biases Affecting Decision-Making in the Financial Market
1 Ibn Zohr University, Research Laboratory in Entrepreneurship, Finance and Management of Organizations, Morocco
2 Ibn Zohr University, Research Laboratory in Entrepreneurship, Finance and Management of Organizations, Morocco
3 Hassan II University, Research Laboratory in Economic Regulations and Strategic Intelligence, Morocco
4 Hassan II University, Research Laboratory in Economic Regulations and Strategic Intelligence, Morocco
* Corresponding author: firstname.lastname@example.org
For decades, the advent of behavioural finance has challenged market finance theories. The latter has been the subject of many criticisms from advocates of behavioral finance especially with regard to the rationality of investors. Indeed, recent studies have shown that investors are subject to bias arising from their own daily behaviour, which can distort their investment decisions. This article is intended to be a study of the different behavioural factors affecting decision-making among retail investors. The analysis of the data was carried out on a sample of 100 Moroccan individual investors. The results enabled a number of factors to be obtained which significantly influenced both the investment intention and the equity market participation. Thus, the financial expectations variable, overconfidence and financial literacy represented significant relationships with the intention to invest, while the financial situation, financial self-efficacy and investment intent significantly affect the equity market participation variable. Moreover, the study rejected the hypothesis that there was a mediating effect of the intention to invest between all the variables taken separately and the variable participation in the stock market.
Key words: Behavioural finance / Investment decision / financial market / Individual Investors / Theory of planned behaviour (TPB)
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.